Brandon Land Titles
705 Princess Avenue
Brandon, MB
R7A 0P4
Ph: (204) 726-6279
Fax: (204) 726-6553 |
Winnipeg Land Titles
Woodsworth Building
Lower Level
25 - 405 Broadway
Winnipeg, MB R3C 3L6
Ph: (204) 945-2040
Fax: (204) 948-2140
|
Dauphin Land Titles
308 Main Street S.
Dauphin, MB
R7N 1K7
Ph: (204) 622-2084
Fax: (204) 638-0881 |
Morden Land Titles
351 Stephen Street
Morden, MB
R0G 1J0
Ph: (204) 822-4436
Fax: (204) 822-1988 |
Neepawa Land Titles
329 Hamilton Street
Neepawa, MB
R0J 1H0
Ph: (204) 476-7040
Fax: (204) 476-2158 |
Portage La Prairie
Land Titles
Provincial Building
25 Tupper Street N.
Portage La Prairie, MB
R1N 3K1
Ph: (204) 239-3306
Fax: (204) 239-3615 |
Federal & Indian Land Leasing
The leasing of Federal and Indian Lands are administered directly by these authorities.
The appropriate sources should be contacted regarding these lands and the acquisition of
oil and gas lease rights.
Surface Rights
The
Surface Rights Board is a
quasi-judicial board established under
The Surface Rights Act.
The primary function of the board is to arbitrate disputes relating
to right of entry or compensation for surface rights used by holders
of
oil and gas rights.
The board also provides mediation services between surface owners,
occupants and
oil and gas rights
holders on a voluntary basis.
The board is
an independent, impartial body responsible for hearing all sides
and, from the evidence, making decisions within the framework of The
Act.
The Surface Rights Act
and the board are administered under the Mineral Resources Division
of Science,
Technology, Energy and Mines.
The Petroleum Branch of
Science, Technology,
Energy and Mines is responsible for administration of
The Oil
and Gas Act. The Oil and Gas Act regulates all aspects of
exploration for and development of Manitoba's oil and gas resources.
The Brandon Regional Office of
The Surface Rights Board of Manitoba is located at Room 107,
340 - 9th Street, Brandon, Manitoba. Inquiries
can be directed to
Charlotte Kalmakoff
at (204) 726-6257. The office will provide assistance to
landowners/petroleum operators/occupants with surface rights issues.
Surface Rights
Board Members:
T.A. (Art) Cowan - Presiding Member
Margaret Hodgson - Member
Claude Tolton - Member
Ivan Carey - Member
All inquiries and correspondence related to the board
should be directed to:
The Surface Rights Board
360-1395 Ellice Avenue
Winnipeg MB R3G 3P2
Attention: Barb Miskimmin, Secretary to the Board
Phone: (204) 945-0731
Toll-free: 1-800-282-8069 Ext. 0731
Fax: (204) 948-2578
E-mail:
bmiskimmin@gov.mb.ca
Crown Oil & Gas Leasing
Crown Lease Sales Postings and Notice of Sale
The Crown Disposition Regulation provides for
public sales by sealed tender of Crown oil and gas rights in Manitoba. Four sales are
generally conducted by the Branch every year, in the months of February, May, August and
November. Sale dates and corresponding posting request deadlines are published annually.
Posting requests to be included in any given sale are to be submitted to the Branch by
the published deadline. The postings requests are reviewed by the Branch, to verify the
ownership of the rights requested, and also by other provincial Branches and Departments
to provide comments, particularly with respect to surface access in environmentally
sensitive areas.
A notice of "Public Offering of Crown Oil and Gas Rights", listing all
parcels and conditions of sale is published 5 weeks prior to the date of the sale. An
addendum indicating any special conditions attached to the disposition of any parcel may
also be included in the notice. This may involve a drilling commitment as a condition of
purchase, or special environmental conditions that may exist with respect to surface
access.
The notice is distributed to industry publications and to all interested parties on the
Branch mailing list, as well as made available on the Branch internet website.
Any company that intends to purchase a disposition must be registered to do business in
Manitoba. Registration may be made by application to the following address:
Manitoba Companies Office
Woodsworth Building
1010 - 405 Broadway
Winnipeg, Manitoba
R3C 3L6
Ph: (204) 945-2500
Fax: (204) 945-1459
E-mail: www.gov.mb.ca/cca/comp_ off/index.html
Bid Offerings
All bid offerings are submitted under "sealed tender", as directed in the
sale notice, and must consist of the first year rental fee ($3.50/hectare) and a
non-refundable $400 application fee, along with the bonus offer as determined by the
bidder. An address for service, GST Registration Number and the names and percentage
interest of all parties to the agreement is also required.
The formats for bid offerings acceptable to the Branch are provided in the samples
shown in Figure 2, 3 and 4.
Electronic Fund Transfer
It is mandatory in Manitoba that all payment of fees associated with bid offerings,
including the first year rental, application fee and bonus offer are submitted
electronically. All corporate account information is to be submitted to the Branch prior
to the sale in the format shown in Figure 5.
If successful, the bidder's corporate account is debited for the applicable rental,
application fee and bonus.
Sale Results
The results of a "Public Offering of Crown Oil and Gas Rights" are published
the next day following the date of the sale on the Branch internet website, and are also
distributed to all bidders and interested parties on the Branch mailing list.
Types of Dispositions
There are two types of agreements relating to Crown oil and gas rights in
Manitoba, "exploration reservations" and "Crown oil and gas leases".
Exploration Reservation
An "exploration reservation" is an agreement with the Crown that grants the
holder the exclusive right to drill within the area of the reservation for a term of 3
years.
A 1-year extension to the "exploration reservation" term may be granted if
the lessee commits to drill a well during the extension term, subject to Branch approval.
Prior to producing from any wells drilled in the reservation area, the holder must
convert the exploration reservation to lease.
The depth of the well(s) drilled in the reservation area determines the number of
quarter sections that may be selected as Crown oil and gas leases in accordance with the
following formula:
L = 8 + (D - 500)/60
Where;
L is the maximum number of quarter sections for selection (not less than 8)
D is the depth (in metres) of the well(s) drilled
Crown Oil and
Gas Lease
A "Crown oil and gas lease" grants the lessee the exclusive right
to drill in and produce oil and gas from the area covered by the agreement for a term of 5
years.
If the area is productive, the lease is renewable for further 5-year terms. At the end
of the second term, deeper rights are severed and only productive spacing units are
renewed.
Extensions to existing terms may be granted if the lessee commits to drill a specified
number of wells during the extension term, subject to Branch approval. Where the number of
undrilled spacing units contained in the lease is four or less, a one well drilling
commitment is required. A one well drilling commitment is required for every four
undrilled spacing units contained in the lease after the first four. An additional one
well drilling commitment is required for any remaining undrilled spacing units contained
within the lease. A penalty fee is levied for each year of extension for up to 5 years (Table 1).
Production from a lease is subject to a Crown royalty (share of production) in
accordance with the Crown Royalty and Incentives Regulation.
Where a lease holder is required to attain Crown oil and gas rights to complete a
spacing unit under a lease agreement, a private sale of a "Crown oil and gas
lease" may be made to the holder of the remaining interest in the spacing unit by the
Branch.
Table 1 provides a summary of information regarding fees, rentals and extensions
concerning "exploration reservations" and "Crown oil and gas leases".
Table 1: Types of Crown Dispositions
|
Exploration Reservation |
Crown Lease |
Rights Granted |
exclusive drilling rights |
exclusive drilling & production rights |
Area |
3 to 15 sections
(768 to 3840 ha) |
3 sections or less
(768 ha or less) |
Term |
3 years |
5 years |
Renewal |
N/A |
1st term (5 years)
productive
quarter sections |
2nd term (5 years)
productive
spacing units
(to base of deepest
producing formation)
DEEPER RIGHTS REVERSION |
Extension |
1 year
(requires drilling commitment)
$3.50/ha |
1 year
(up to 5 extensions permitted
with drilling commitment)
Extension Penalty
1st year - $ 2.50/ha
2nd year - $ 5.00/ha
3rd, 4th & 5th year - $12.50/ha |
Conversion to Lease |
after 3 years
(requires drilling commitment)
(size of lease area based on depth of well(s) drilled in Exploration
Reservation) |
N/A
|
Fee |
$400.00 |
$400.00 |
RENTAL |
$3.50/ha |
$3.50/ha
(minimum rental $50.00) |
|